If major oil companies balk at paying higher royalty rates on oil sands projects, then the Alberta government should consider developing the resource themselves by working in equity partnerships with more cooperative companies, says Gil McGowan, President of the Alberta Federation of Labour.

"I think we should learn a lesson from other oil rich jurisdictions, especially Norway. And that lesson is that if private sector firms aren't willing to develop our resources in the public interest we shouldn't be afraid to do it ourselves. Royalties are one way to guarantee returns for the public, but ownership is another."

McGowan's remarks were made as part of his presentation to the Alberta government's Royalty Review Panel meeting in Calgary today.